Loco Bakers: A Comprehensive Business Plan for a UK Bakery Startup

This report presents a business plan for Loco Bakers, a bakery business focused on vegan cakes, pastries, and handmade cookies in the UK. It includes a business overview, detailing the products and services, and applies Porter's Five Forces model for market analysis. The target audience encomp...Read More

Business Plan

Content
 Introduction
 Business overview
 Market Analysis
 Marketing and sales plan
 Conclusion
 References

INTRODUCTION
The business plan is the plan that is in the form of a written
document that gives the details of why and how to start the
business. As it defines the start-up that defines all the ideas on
how the company will do its job so effectively (Caiati, V.,
Rasouli, S. and Timmermans, H., 2020). The business plan is
primarily viewed as the company's written roadmap from the
areas of marketing, function and finance. The report covers on
the business plan of Loco Bakers which was as bakery business
of cakes in UK. It covers business overview, market analysis,
marketing and sales plan.

Business overview of Loco Bakers
The business plan comprises of several actions and planning
for the business setup. In the present time bakery is very famous which
is started by several people providing products according to customers
choices, preferences and demand. The business name is Loco Bakers.
Products and services- The Loco bakers will offer vegan cakes,
pastries and vegan confectionery products. It will also provide
handmade cookies with several flavours such as Chocolate Truffle
Sandwich Kessler Cowboy, Walnut Chocolate Chip (Kock, A., and
et.al., 2020). It will provide high quality product and facilities to
consumers so that they get more influenced towards the brand.

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Theory or model- To start the business porters five forces model will be used for analysing the threats,
availability of substitutes, bargaining power etc.
 Internal rivalry- The power will be high as there will lot of customers in the bakery industry.
 Barriers to entry- The power will be low for barrier of entry as economies of scale is beneficial. This
 Bargaining power of buyer- The power is moderate as the customers for the bakery products are
supermarkets, grocery stores, hotel chains and convenience store which are suitable for the industry profit.
 Bargaining power of supplier- The power is low as supplier do not have negotiating power in the bakery
business because of well-developed market and commoditized nature in selling.
 Threat of Substitutes- The power of substitutes is moderate as in the market their several bakeries exit
which offers substitutes products

Market analysis
A market analysis refers to the term industry analysis which refers
to an element of the business plan that is used to authorize the
profitable viability of the company. It has been discussed that
bakery is the business that provides baked, handmade cookies and
cakes to events and the positions to consumers. It can be traded as
an individual or more than on an individual basis.

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 The target audience is the subsequent stage to target the sections which are segmented for
distinguishing business opportunities. To start the business of bakery there is need of taking particular
size of business which helps in knowing is the business is worth pursuing. In the context to Loco
bakers, it will target to all age group and class of people for offering its products in accordance to the
taste, preferences, and purchasing power (Sarnataro, M., Barbati, M. and Greco, S., 2020).
 The target people will be benefited as the Loco baker is providing quality product with unique
flavours, in the cakes, pastries and cookies, brownies. By focusing on the product line of specific the
perfect recipe and manufacturing can be made.

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 The mission statement of Loco bakery is to become great leader by offering
quality products with varieties. It wants to have team of talented individuals so
that superior quality product can be offered. The talented team of chefs will use
the purist of ingredients and cutting-edge techniques for creating product that is
greater in quality. There are lot of competitors for Loco baker which are
existing business owners of large bakery with the recognised brand. The
competitors are such as Cake Plate, EI Paso bakery.
 The Loco bakery is better with the competitors due to its innovation offering of
products with unique design, packaging which differentiates from other
competitors. This also provides great quality cakes with different flavours and
also provide facility of making customized cakes.

Marketing and Sales plan
The marketing is the activity of promoting products in market by
taking use of several techniques which is offered to final consumers.
The sales are related to selling of products to target customers for the
given time period and cost incurring on delivering product is called
as sales. To make the brand known in market the business is required
to develop marketing and sales plan. ‘

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The customers will learn about the business by taking use of online
banners, advertising, social media marketing on Facebook, Instagram. The
Loco baker will provide free sample for tasting products and it will give
more personalized experience. The bakery can also take use of several
promotional techniques such as public speaking. The company is financed
and financed by family and friends or other financial institutions. Then the
owner takes funds from the banks and the shareholders are funded in the
business. Hence, it will be so effective in making the money in the business.
The capital is need is 20.000 to 25.000 £ for setting up the business and
covering the start-up cost.

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 The customers will be encouraged for telling to others regarding the
bakery and its products by offering them facility of custiomized cakes,
unique flavors with new design and offering some discounts or offers on
purchase. The bakery will also take feedback from customers so that it
can make modification and improvised product and services can be
offered.
 The Loco bakery have short- and long-term plan for the promotions and
offers of product as the short term is to earn enough to cover day to day
cost of business (van der Werff, N., 2021). The Long term is to expand
locally and eventually move internationally with a strong brand name
and position.

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 The bakery will be operated with the physical stores with unique interior
so as to attract more customers and at the location of there where the
crowd is more so that it can easily attract more colleges, school’s
students etc. With the help of e-commerce, it can operate its business and
providing facility of online ordering.
The three objectives or Goals of bakery are as follows-
 To establish a strong in the domestic market
 To have a huge brand in the next 2 years of the launch
 To cover day to day cost of business and earn enough profits in next 12
months to pay off any debts and liabilities.

Conclusion
From the above report it was concluded that the business plan is the most important document drawn
up by the managers and the executive who are working on the creation of the new company to collect
and plan the actions, all in the source of the information that are desired in the company. In this report
above, there is an overview of Loco bakers where funding is being topped up by some government
support and some internal or external business sources. Then the marketing plan is accompanied by
actions such as market alignment and product mix by the marketing directors in relation to promoting
their products and facilities.

References
 Caiati, V., Rasouli, S. and Timmermans, H., 2020. Bundling, pricing schemes and extra features
preferences for mobility as a service: Sequential portfolio choice experiment. Transportation
Research Part A: Policy and Practice, 131, pp.123-148.
 Kock, A., and et.al., 2020. Project portfolio management information systems’ positive influence
on performance–the importance of process maturity. International journal of project
management. 38(4). pp.229-241.
 Sampath, S., and et.al.,2021. A generalized decision support framework for large‐scale project
portfolio decisions. Decision Sciences.